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Crypto Firms Float Bank Partnerships to Revive Stalled Senate Stablecoin Bill

Proposals give community banks roles in reserves or issuance to address deposit‑flight concerns.

Overview

  • The Senate market‑structure bill remains stalled over stablecoin rewards after a White House meeting this week ended without a deal.
  • New industry proposals would require some stablecoin reserves to be held at community banks to give them a direct role and revenue.
  • Another option under discussion would let community banks issue tokens through partnerships with crypto firms.
  • Banking groups say yield‑like incentives could pull deposits from smaller lenders, and thousands of bankers have lobbied against such rewards.
  • Not all crypto companies back the bank‑focused plans, and it is unclear whether the concessions would satisfy banking concerns even as lawmakers talk up a balanced compromise.